What results in the aggregate demand curve shifting rightward year after year?
What will be an ideal response?
growth in the quantity of money
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Erin just won Lotto America, which will pay her $40 million over the next 20 years at a rate of $2 million a year. Is Erin $40 million richer today?
Refer to Figure 1.7. The cost of producing at point D rather than point J is
A. OM units of clothing. B. OA units of food. C. KM units of clothing. D. AC units of food.
For the aggregate supply curve, the profit effect
A. Provides an incentive for producers to decrease output when prices rise. B. Is temporary in the short run, while in the long run it is canceled out because the cost effect dominates. C. Dominates in the long run and causes the curve to be upward-sloping. D. Along with the cost effect causes the curve to be downward-sloping in the long run.
The demand for money is
A) positively related to the nominal interest rate. B) positively related to the real interest rate. C) positively related to the price level. D) negatively related to real GDP. E) negatively related to the price level.